Crown are experts at realising incredible profits on their projects by buying the land well. I was told by some of their intoxicated team (both in sales and marketing) at a functon that 60-70% is common.

Crown are experts at realising incredible profits on their projects by buying the land well. I was told by some of their intoxicated team (both in sales and marketing) at a functon that 60-70% is common.

Most developers are lucky to manage 30%.

They have their target market and branding down to a tee.

Not only that, they also offer management which many buyers opt for.

Smart operators.

Perhaps not so the investors.

Beautiful building though.

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yeah..crown are no fools. The people who bought- maybe. I like that story about a 2 bed apt going for 1.3 mil...and the buyers musing, after the fact, if they paid too much.
I don't think itll crash when rates rise/slowdown, but rather flat or a minimal decrease and will last for quite a few years. Those buyers will see minimal CG 3-5 years after completion and get fed up of the high opportunity cost and will look to offload. That's when it gets tricky as it is no longer deemed new and the market will automatically decrease by a bit.

Correct. But OTP in Australia still have an attractive return compare to what they get in their own country.

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Yes. I suspect the foreigners and providers of foreign capital to buy these things compare it to what a similar product in a similar location in their own countries more so than Australian asset comparisons and Australian location comparisons.

By the look of that queue, it looks like they flew in a plane load of Chinese investors for the slaughter?

$1.3mill, with a rent return of $800p/w?

bwhahahahahahahahahahahahaha

(Sorry; that's a bit harsh, but jeez; it's still hilarious)

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I think the article mentioned only 30% were overseas potential buyers. The rest, I suspect most of the que in the pic, are either Perm residents or citizens. Where they get their money from is an entirely different question.

By the look of that queue, it looks like they flew in a plane load of Chinese investors for the slaughter?

$1.3mill, with a rent return of $800p/w?

bwhahahahahahahahahahahahaha

(Sorry; that's a bit harsh, but jeez; it's still hilarious)

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Bayview,

You'll be surprised that lots of overseas investor (Particularly those who come from asian country) will found that 1.3 mill with $800 per week return is Significant enough for them to justify.

Just coming back from holiday overseas in Jakarta... On average property in Jakarta is returning ~0.5-1% gross rental return.

My parent is renting a 4 bedroom house in north of Jakarta (roughly cost around 900k AUD) and we're paying 8-10kAUD a year.
Note: Their interest rate is 12-15%, and they're mortgage duration is 15 years.

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